Aussie and Kiwi soar vs. US dollar ahead of Fed decision

08:48 13.12.2017

On Wednesday, the Australian and New Zealand dollars ascended versus their American rival because market sentiment on the US currency was still uncertain ahead of the Fed’s highly-anticipated policy decision a bit later in the day.

The currency pair AUD/USD gained 0.17% reaching 0.7571.

The Fed is generally believed to lift its interest rates at the conclusion of its two-day policy gathering later on Wednesday. However, worries over tepid inflation could change the outlook for next year.

The US currency also dived amid fresh American political worries, after a Democrat nominee managed to grasp a US Senate seat in Alabama, thus diminishing the Republican camp's Senate majority.

The reduced Senate majority could potentially prevent Donald Trump from implementing tax reform plans as well as other economic policies.

The currency pair NZD/USD gained 0.10% hitting 0.6941, which is the highest value since November 9.

On Thursday, the major US currency rebounded from its unexpected dive following dismal economic data that sparked fears about the strength of the American economy and also backed the Fed’s intention to leave rates on hold in the nearer future…

On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…